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Daily Edition: Apr. 23, 2004
Daimler might be done with Mitsubishi, Ford restacks exec deck.
by TCC Team (2004-04-22)

DaimlerChrysler to pull plug on Mitsubishi?

DaimlerChrysler AG said Thursday it will not proceed with a $6 billion-plus bailout of Mitsubishi Motors, leaving the future of the struggling Japanese automaker in doubt. The announcement is an about-face from reports last week that the German automaker would increase its stake from 37 percent to more than 50 percent by 2007 at a cost of $3.8 billion by buying up more stock as part of a broader bailout that involved Japanese creditors.

"In an extraordinary meeting on April 22, 2004, the Board of Management and the Supervisory Board of DaimlerChrysler have decided not to participate in a capital increase planned by Mitsubishi Motors Corporation (MMC) and to cease further financial support for MMC," said an official statement from DaimlerChrysler.

"This clearly means separation," a DaimlerChrysler spokesman told Reuters, adding that the 37-percent stake would be booked as discontinued business until a buyer could be found. The decision will be explained by DaimlerChrysler chairman Juergen Schrempp today.

http://www.thecarconnection.com/index.asp?...5&sid=173&n=156
 

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So what happens 2 the neon and sissy Jeep now?
 

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I always knew this would happen. Mitsubishi never quite made it into the mainstream like Toyota and Nissan and Honda did, nor did it establish a solid niche and indentity like Mazda or Subaru.

I'd imagine DCX will still end up buying most of the engineering assets once the firesale starts. The Gallant would make a great new midsize for Chrysler/Dodge...
 

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Discussion Starter · #6 ·
As the Chrysler Group, Ford, and GM strengthen their overall positions (i.e., improving quality, improving productivity, more "gotta have" products, improving consumer perceptions(?)), I imagine more headlines like this that are related to the worsening situations of "lesser" auto companies in the near future versus the more typical headlines of the Big Three ceding market share to Japan's Big Three. In a sense, the US will be comprised of the Big Six, with market share gains coming from the Mitsubishi's and Isuzu's rather than GM and Ford. This may be two or three years away, but I cannot help but imagine that that might be one likely scenario.


And as reported on CBS Market Watch:

"...The Tokyo Stock Exchange suspended trading in shares of Mitsubishi Motors (JP:7211: news, chart) (MMTOF: news, chart) before the market open Friday in Tokyo."

That was a smart move, Tokyo. When trading resumes, I imagine DCX's 37% share of MMC is going to be worth a whole lot less. But, it'll make for a nice write-off!
 

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THATS GREAT NEWS!!! i know toyota aint even close or even near goin down nor honda 2 solid nameplates in the US..Mitsu never had good sales except for the eclipse and maybe montero sport and i highly doubt the next eclipse will bring Mitsu back from the almost dead..Mitsu never had a niche car like the camry or accord or civic..yea Mitsu had the galant but never sold well nor had a Car of the Year in God knows how many yrs...thats great news for GM and Ford if Mitsu goes under within the next 5 to 10 yrs it could bring Ford back to its reign that Mitsu took some of it away and give GM a bigger advantage over the import crowd which would lose one competitor.. hey GM let Olds go after 100+ yrs of building and selling cars..its all about profit and Mitsu and Olds werent building nor producing the kinda cars or trucks that the market isnt sinking into peoples minds.. Olds Intrigue good car but came out to late Alero came out to late to make a change to Olds' face changing but GM never put enough money into Olds like they shouldve..but hey car companies were made to have their good times and bad but Olds and Mitsu had a decline in sales over the last 5 to 7 yrs which makes for a bad time for car salesmen and the owners of the dealerships.. but thats life it has its ups and downs and for Mitsu i guess its about to let the fat lady sing
 

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This is good news for GM and Ford. I won't miss Mitsubishi. However, I expect someone will buy the assets and plant in Japan for pennies on the dollars like GM did with Daewoo and we will still see them in the US, but with different badges on them.

Mark
 

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Lets not discount the possibility of GM buying the name and using it to rebadge the same old Chevys so they can have a "Japanese" brand in their stable (like how they're using Suzuki as a "Japanese" front for Deawoo).

The next Eclipse?
 

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Also FYI DCX also just announced it's selling it's stake in Hyundai. They have some SERIOUS problems over there - let's just hope Diamler and Chrysler can stick together...
 

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so........ this means no Evo IX? This is sad, but I guess its a situation of "better them then me" in a way. Im sure whatever engineering and plants will be taken over by everyone. Maybe Toyota will buy them out? What about the rest of Mitsu? Like the part that makes TV's and A/C units? Mitsu didnt offer anything big that shocked or really hit the car world big. To think this whole product redevelopment with all there new cars, designs and the introduction of the Evo to America and its gunna be over.
What about the next Neon that was said to be on the Lancer platform? I guess DCX will buy whatever they need to get it done. Maybe Renault will buy them! It saved Nissan... I think?
 

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The Mitsu' group companies are seperate, but they each own stakes in each other. The big ones (Mitsu' Bank, Mitsu' Heavy Industries, etc.) were planning on forwarding Mitsu' Motors a cash bailout alon with DCX, but that would seem to be off now.

And I'm not so sure someone will want the factories. There's a huge amount of overcapacity in North America, and Mitsu's factory is said to have a lot of problems (they're being brought up on charges of systemic racism and sexism IIRC!!!)

Not sure what the X stands for either ;)
 

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Hmm
I find it odd that a whole company would just go under, I think its likely once it gets low enough that it will be baught by someone and retired I.E. olds.
 

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Originally posted by AmericanREV@Apr 23 2004, 03:54 AM
Just so I can keep up with you really smart guys, (I mean that) what's the X in DCX?
I like to think of the X as eXperiment... The Daimler-Chrysler eXperiment. I really don't know what it stands for either, but I have a feeling it was place-holder for another name to be added. Was Schrempp going to add Nissan, Mitsubishi, Hyundai, or somebody else to help build his global auto powerhouse?


This news about Mitsubishi is a surprise. I thought for sure Schrempp was going to get his way and try to add Mitsubishi to his growing automotive empire. It seems the European stockholders and Duetsche Bank knocked him down a bit (?) I know there are more and more disgruntled German stockholders that believe getting Chrysler and Mitsubishi was a mistake. It looks like they might have won one.
 

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Originally posted by casket_demon@Apr 23 2004, 01:49 AM
So what happens 2 the neon and sissy Jeep now?
I wonder about this as well. I think the work is so far along that it can't be stopped now. Chrysler Group is suppose to learn how to build a car from Mitsubishi and Mitsubishi is suppose to get SUVs and trucks from Dodge. At one time, there were rumors about Mitsubishi getting a minivan. We'll see what happens.
 

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See what making mediocre cars and ugly SUV's does for a company?

This company has consistently ruined its products. The Eclipse was once a fine car; now it is putrid. The recent lineup of SUV's has gone from truck-like and sturdy to rollover prone ugly monsters that borrowed Javelin wheel arches and slapped them on chrome laden monstrosities.

The car lineup has been foresaken. The trucks abandoned. The SUV's given shots of ugliness not seen since the birth of the Clinton child.

Mitsubishi is best known in the last five years for having the best commercials and the worst product.

Let them go belly up.
 
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